Absa sealed a £1.3 billion deal with Barclays December 6, 2012 to takeover the British bank’s Africa operations. The move will enable Absa to acquire the operations of Barclays in nine African countries including Ghana where it will take over 100% of the bank’s operation in the country.
In an interview with the South African news publication, BusinessDay on December 10, 2012, Absa’s head of retail markets, Arrie Rautenbach said Islamic banking had always been a strategic initiative of the bank.
“The need for Islamic banking products on the African continent cannot be over-emphasised,” Rautenbach told the publication.
“We are engaging our stakeholders in Barclays to assist with the launch of Islamic banking in certain African jurisdictions including Ghana, Egypt, Tanzania, Uganda and Zambia,” he said.
The Bank of Ghana (BoG) has already indicated its wiliness to accept Islamic banking in the industry but it is yet to receive an application to start that form of banking.
Islamic banking is a type of banking that prohibits the charging of interest on loans.
By Ekow Quandzie